Moving From California To Maine

June Construction Jumps 15%

New York, N.Y. – July 22, 2011 – New construction starts in June climbed 15% to a seasonally adjusted annual rate of $436.8 billion, according to McGraw-Hill Construction, a division of The McGraw-Hill Companies.  The gain followed particularly weak activity in May, and helped the pace of contracting during this year’s second quarter stay close to its first quarter level.  June featured a substantial increase for the nonbuilding construction sector, led by the start of several large electric utility projects.  Nonresidential building also registered improvement in June, while housing edged up slightly.  During the first six months of 2011, total construction starts on an unadjusted basis came in at $198.2 billion, down 7% from the same period a year ago.

The June data lifted the Dodge Index to 92 (2000=100), which is the highest reading so far in 2011.  During the first five months of 2011, the Dodge Index had trended downward, moving from 91 in January to 80 in May.  “The pattern of construction starts during the early months of 2011 showed a loss of momentum, due largely to renewed weakness for single family housing combined with a pullback for public works and institutional building,” stated Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction.  “June’s gain enables the average for this year’s second quarter to be down a modest 2% from the first quarter, a milder slowdown than what was being suggested by the data through May.  The overall level of construction continues to be weak, but June’s gain is consistent with the sense that construction activity is hovering at a low level, rather than seeing further sustained declines.”

Nonbuilding construction in June soared 34% to $163.2 billion (annual rate).  The lift came from the electric utility category, which advanced 103% in June as it continued to see a robust volume of projects reach the construction start stage.  June included the start of a massive $1.3 billion transmission line project in Maine, as well as a $710 million transmission line project in New Jersey.  Other large electric utility projects reported as June starts included two gas-fired power plants, located in North Carolina ($900 million) and California ($440 million), as well as two large wind power facilities, located in Kansas ($350 million) and Texas ($338 million).  The public works sector in June registered a smaller 2% gain, reflecting a mixed pattern by project type.  Highways and bridges climbed 9% in June, making a partial rebound after May’s depressed amount, although remaining below the elevated pace witnessed during 2010 and early 2011.  Sewer construction in June grew 4%, helped by the start of a $94 million waste water treatment plant in New Rochelle NY.  The miscellaneous public works category increased 14%, boosted by the start of airport runway work in Chicago and Boston.  Decreased activity in June was reported for water supply systems, down 8%; and river/harbor development, down 34%.

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Similarly, it seems unlikely that the club won’t add to its existing bullpen, which is currently last in the AL in reliever ERA with a 4.88 mark and is also bringing up the rear in batting average against. Bringing up Chuck James was likely a move in the right direction, provided he gets more than just an inning a week to prove his merits, but the pen still has some gaping holes when Alex Burnett and Phil Dumatrait are working high leverage innings.   This is the most likely scenario, primarily because it could even be as simple as adding a decent bullpen arm. For instance, there’s been a little talk that the cash-strapped Los Angeles Dodgers could move Matt Guerrier but given that contract, aren’t likely to find any takers. Offensively speaking, it’s hard to really think of where the Twins could or should add a piece, though playing Joe Mauer at first more frequently does make the idea of a rent-a-catcher seem a bit more palpable. I proposed Ramon Hernandez on Twitter, and it was met with a little backlash. Still, a 35-year old catcher in a time share with a younger catcher, in an organization that has a top prospect who is major league ready and also a backstop, seems to make sense to me. It surely doesn’t hurt that Hernandez is hitting .312/.365/.519 in his limited duty with the Cincinnati Reds. On the pitching side, there’s virtually no chance of adding a starter. The club is already at odds with Kevin Slowey over his role with the club due to not having a starting spot for him, so they are not about to cloud that situation any more. In fact, Slowey could be a key chip moved at the deadline, even if it’s for pennies on the dollar as I’m expecting it to be. There is certainly no shortage of bullpen arms who could be made available, like the Padres late-inning duo of Mike Adams and Heath Bell, but the Twins would do well to explore cheaper options, preferably one with a penchant for strikeouts. I like the idea of trying to pry Zach Braddock from the Brewers, but I honestly don’t believe they’d have any notion of dealing him. Options that may make sense, in no particular order, include Craig Breslow, Kerry Wood, Koji Uehara, Chad Qualls, Jon Rauch, Jason Frasor, Grant Balfour, or perhaps Minnesota-bred Michael Wuertz.

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